The Global Open University 2012-1st Year M.B.A Global open University of Accounting and Financial Administration - Question Paper

c. Retained earnings
d. Net profit
29. What will be debited, if business
bought goods on credit from Mr. Ali?
a. Purchases account
b. Mr. Ali account
c. Cash account
d. Sales account
30. Prepaid rent provided in the Trial
Balance will be treated as a (an)
a. Asset
b. Liability
c. Revenue
d. Deferred expense
31. A business event which can be
measured in terms of money and
must be recorded in books of
accounts is called
a. Condition
b. Transaction
c. info
d. Record
32. Which 1 of the subsequent is NOT
a feature of sole proprietorship
business
a. Easy Formation
b. Easy Dissolution
c. Unlimited Liability
d. Separate legal entity
33. In which of the subsequent
statement opening stock is shown?
choose accurate choice
a. Profit and loss account
b. Balance Sheet
c. Cash flow statement
d. Owner's equity
34. The primary purpose of preparing
a cash flow statement for an entity is
to give info about: choose
accurate choice
a. The profitability of its business
operations for a period of time
b. Its financial position at the end of
an accounting period
c. Its cash receipt and payments
during an accounting period
d. None of the provided choices
35. Which of the subsequent is (are)
example(s) of non distributable
profit?
a. General reserve
b. Accumulated profit and loss
c. Revaluation reserves
d. None of provided choices
36. Which of the subsequent
Organization converts raw material
into finished goods?
a. Trading concern
b. Manufacturing concern
c. Merchandising concern
d. Service concern
37. What will be debited, if business
bought goods on credit from Mr. Ali?
a. Purchases account
b. Mr Ali account
c. Cash account
d. Sales account
38. Total assets - Total liabilities =?
a. Owner's Equity
b. Expenses
c. Retained earnings
d. Net Profit
39. Any expense that provide benefit for
a period of less than twelve months is
called ________.
a. Capital Expense
b. Revenue Expense
c. Revenue Receipt
d. Deferred Expense

Earning:   Approval pending.